Question

Barry’s BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs? $2,050 $1,850 $2,150 $2,350

Answer 1

Answer:

The total product costs is $2,050

Explanation:

Given cost:

Ribs cost = $1,400

Labor cost = 45 hours × $10 per hour = $450

Seasoning and Sauce cost = $50

Advertising = $300

Grill cost = $150

Administrative cost = $100

By using these cost, we can easily compute the total product cost.

The product cost is that which is attached to the product. It can be direct material, direct labor, etc.

So product cost = Rib cost + Labor cost + Seasoning and Sauce cost + Grill cost

= $1,400 + $450  +  $50 + $150

= $2,050

Other cost is not considered because they are related to general & administrative cost, selling cost which termed as period costs.

So, the total product costs is $2,050